- Even as the tech sector remains under pressure, SaaS shares are expected to do well in the future.
- Their last year’s solid performance shows that boosting a business through a SaaS earnings model can be an attractive exercise for companies.
- IMD, RDY and WTC are some of the shares that can be looked at in January 2022.
While the information technology sector underperformed, ASX-listed software-as-a-service (SaaS) shares surged last year, giving decent returns to their shareholders. The solid performance of these shares showed that boosting a business through a SaaS earnings model can be an attractive exercise for companies.
Even as the ASX tech sector is currently witnessing pressures due to expected interest rate hikes, investors can look at some solidly positioned SaaS shares for exciting returns in January 2022.
On this note, we will discuss three ASX-listed SaaS shares which can be looked at in January 2022. These stocks gave a return of over 60% in the past year.
Imdex Ltd (ASX:IMD)
Imdex is a mining equipment, technology, and services (METS) company, which is currently operating in all the key mining areas, including Africa, Asia Pacific, Europe, and the US.
The stock gained nearly 62% in the past year. The share gave a negative year-to-date (YTD) return of nearly 6%.
The company reported strong earnings in FY21. The revenue rose by 11.2% to AU$264.4 million year on year. The net profit surged 45% to AU$31.67 million. The company’s rental and SaaS-based revenue rose from 44% to 57% of total revenue between FY17 to FY21.
Readytech Holdings Ltd (ASX:RDY)
Readytech Holdings offers people management software for educators, employers and facilitators of career transitions to complete payroll, human resource admin, work health and safety management ecosystem.
The stock gained over 69% in the past year. The share has given a negative year-to-date (YTD) return of nearly 14%.
In FY21, the company’s revenue increased 27.4% to AU$50 million compared to previous year. However, the earnings fell to AU$2.16 million from AU$3.94 million. The company also acquired Open Office for an upfront price of AU$54 million during this period.
WiseTech Global Ltd (ASX:WTC)
WiseTech Global is an information technology company and the provider of software solutions to the logistics industry globally.
The stock gained over 97% in the past year. The share has given a negative year-to-date (YTD) return of over 8%.
In FY21, the company reported the doubling of its net profit to AU$105.8 million on revenue of AU$507.5 million.
As per the latest fiscal guidance provided by the company, the revenue is expected to rise 18% to 25% in FY22. The earnings before interest, tax, depreciation and amortisation (EBITDA) would rise 26% to 38%.
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